I like the first house. and I do not want to lose the opportunity to bid on second house but I am concerned about if both banks accept my offer and I only have money to purchase one.

The biggest concerns as I see them are:- Rehab costs are possibly more than $2K, something unforeseen can bee $5K- Vacancy - lost rent is a killer- Who pays the utilities...these can be brutal if you have to pay them all.- Management costs or the cost of your time to manage

Of more concern would be your DSCR.

Hey Svetoslav,You seem to be missing "The bank appraised the property at $440,000", which is the total value as far as the bank is concerned.

My wife is concerned that we would be unable to live in the property. 

@Kay CannonI haven't done it myself... but have an associate who knows a guy who's making an absolute killing with mobile homes here in Phoenix.

I am in contract and sign the first of next month.My concern is that the banker is telling me the underwriter may not approve the loan because the units are to similar and they will feel I’m only saying I’ll occupy the other unit to avoid the invester fees.

If that were true, we could all go around buying FSBO homes and then relisting them with an agent for a nice profit - you'd be rich within a year.The truth is that: 1) FSBO homes are typically way overpriced, and 2) Lower priced homes (mobile or located in rural areas) are more likely to list FSBO.

My biggest concern with tertiary markets has always been the buyer pool.

@Josh Crockett Everyone is different on what they look at CoC, CF, etc. but when I'm doing that I'm most concerned with cash flow since my strategy is long-term buy and hold.